UK resident US citizen money market funds

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jdmjdm1
Posts: 1
Joined: Tue Oct 15, 2019 5:09 am

UK resident US citizen money market funds

Post by jdmjdm1 » Tue Oct 15, 2019 5:20 am

Hello and thanks for this wonderful resource!

Briefly, I am a dual UK/US citizen currently resident in the UK with all investments housed in the USA. I would like to put some money into a US money market fund but am having trouble finding out if the funds in question have UK reporting status . Have slogged through the awful UK gov spreadsheet of reporting funds, but do not find them but I'm not sure I'm looking in the right way. I tried searching by CUSIP but no luck. Is the ISIN needed to search that spreadsheet? If so where can it be found if the fund web site isn't showing it?

Many thanks,

JDM

TedSwippet
Posts: 2502
Joined: Mon Jun 04, 2007 4:19 pm
Location: UK

Re: UK resident US citizen money market funds

Post by TedSwippet » Tue Oct 15, 2019 6:08 am

Welcome.
jdmjdm1 wrote:
Tue Oct 15, 2019 5:20 am
Briefly, I am a dual UK/US citizen currently resident in the UK with all investments housed in the USA. I would like to put some money into a US money market fund but am having trouble finding out if the funds in question have UK reporting status . Have slogged through the awful UK gov spreadsheet of reporting funds, but do not find them but I'm not sure I'm looking in the right way. I tried searching by CUSIP but no luck. Is the ISIN needed to search that spreadsheet? If so where can it be found if the fund web site isn't showing it?
This wiki page shows all the Vanguard US domiciled ETFs that are currently known to be HMRC reporting. It was created by taking HMRC's awful spreadsheet and cross-referencing Vanguard ETFs with reporting status against a list of US domiciled ETF stock tickers (and I should probably document the process somewhere -- added to my TODO list). US funds mostly don't use ISINs.

Vanguard US domiciled ETFs that are HMRC reporting funds - Bogleheads

Which specific fund are you looking for here? As far as I'm aware, no Vanguard US domiciled mutual fund has HMRC reporting status, and only selected Vanguard US domiciled ETFs do.

That aside, HMRC non-reporting funds are only tax-punitive when it comes to capital gains or undistributed income, and you wouldn't expect either of these from a money market fund, only regular interest/dividend income. So unless I'm missing something here, holding a non-reporting money market fund seems to me like it wouldn't cause any particular UK tax problems.

For historical reasons, I still hold a small balance in Vanguard's Prime Money Market Fund, and while it's a bit of a logistical pain to add to my UK tax return, in practice the tax I pay on the interest and dividends from it works out the exact same as if this was an ordinary UK interest bearing account.

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